The current economic climate, increased competition and continued uncertainties in the wider housing market have put the mortgage industry under huge pressure. These market pressures show no sign of abating, with competition intensifying as evidenced by increasing Loan to Value metrics and lower new lending margins. Having considered all of these factors, and whilst no final decision has been made, we are proposing to cease origination of new mortgage lending until conditions become more favourable.

The Mortgage business will operate as normal through a period of consultation with affected employees and, whilst the proposal is to cease origination of new mortgage lending, this will not impact on existing mortgage customers or new applications/DIPs which are already in progress, regardless of the outcome.

This proposal has absolutely no reflection on the professionalism and hard work of our Mortgage colleagues or the many organisations they work in partnership with, a fact that has recently been corroborated by wide ranging external recognition, including a five star award at the Financial Adviser Service Awards.

Further information will be made available once the consultation process has concluded which we anticipate will be at the end of February.